Statistically, less than 10 percent of “For Sale By Owner” sellers actually succeed. Selling your home without a real estate agent may seem like a good idea. The thought of not having to pay a commission is a persuasive factor in why some sellers go the FSBO route. But is the “For Sale By Owner” (FSBO) option the right choice?
Here 5 reasons that FSBO sellers are unsuccessful more often than not:
1. An Ill-Prepared Property
Preparing a house to be sold doesn’t just mean making sure everything is tidy; the condition of the house needs to be perfect. Houses that have obvious things wrong are going to be challenging to sell and they’re not likely to command top dollar.
This will involve:
- Doing repairs.
- Removing unnecessary furniture and clutter.
- Painting and decorating neglected rooms in a way to make them look as appealing as possible.
- Having a professional cleaning.
2. Handling Potential Buyers
A major part of the real estate agent’s job is handling inquiries. Staying on top of calls and emails, being prepared to show the property when it is convenient for potential buyers, can be some of the hardest things to manage for a FSBO seller. This is where an experienced agent would eliminate that stress from a seller.
3. Unsatisfactory Inspection Results
A home inspection may turn up some problems with the house that the owner doesn’t want to acknowledge. Most buyers will require a home inspection, and very often, they will highlight some problems with the house. This can upset the owner and can lead to the deal falling through when the owner is unwilling to fix any issues unearthed. Real estate agents have been through the process many times and can offer their expertise in negotiating a successful outcome. Getting through a home inspection is often about give and take.
4. Negotiations with Buyers
The value of pricing your home correctly can be difficult to get right if you don’t have the experience. Negotiations over price can be problematic if the owner has lofty or misguided expectations. The purchase contract is something that also needs to be negotiated. The homeowner may not fully understand what the contract holds them to, and when they need to negotiate with the buyer.
It isn’t just about negotiating on the price; the contract needs to be paid attention to as well if the sale is going to be successful.
5. Closing the Deal
Even if the FSBO seller is lucky enough to get an offer, things can still go very wrong. After an offer is accepted, the homeowner can very easily make mistakes in the process, which can lead to failure. A specific order of events needs to take place for the sale to close. This will involve many different parties, and if they aren’t contacted at the right times, the sale can be delayed or even canceled. Selling a house for sale by owner is risky and should be heavily compared to using an agent before a decision is to be made.
Contact Ellen today or stop by at 9 W 63rd St, Kansas City, MO 64113 to find out how you can avoid the hassle of a FSBO deal!